London, UK – Bank of England Monetary Policy Committee (MPC) member Swati Dhingra has urged the central bank to accelerate its cycle of interest rate reductions, arguing that inflationary pressures are fading and tighter policy risks unnecessary strain on growth.
Writing in The Times on Friday, Dhingra said the shocks that pushed UK inflation above continental Europe—particularly administered prices and global commodity volatility—are temporary and should fade. “We should not be overly cautious about cutting interest rates,” she wrote.
Dhingra was one of two MPC members who this month voted for a 25 basis point cut in the Bank Rate, currently held at 4%. The majority, including Governor Andrew Bailey, opted to keep policy unchanged, citing persistent inflation risks.
“BoE Rate Cuts can be delivered without undermining the inflation target,” Dhingra argued, stressing that lower borrowing costs would support business activity and household demand at a fragile moment for the economy.
Britain’s consumer price index stood at 3.8% in August, the highest among G7 economies. The BoE expects inflation to peak at 4% in September before gradually easing toward its 2% target by spring 2027. However, recent data suggest labour market weakness, with employers slowing hiring and vacancies slipping.
Dhingra’s call for a faster pivot contrasts sharply with fellow MPC member Megan Greene, who earlier this week warned that upside risks to inflation remain. Governor Bailey also reiterated that rate cuts were likely ahead but stressed timing and magnitude would depend on inflation’s trajectory.
Dhingra has consistently been on the dovish side of MPC debates, pressing for earlier and sharper reductions. Her latest comments highlight widening divisions within the committee as policymakers balance inflation control with growth concerns.
For investors, the remarks signal mounting pressure inside the BoE for a quicker easing cycle, even as the majority still leans toward caution.
